Notice Regarding Recording of Extraordinary Loss (Impairment Loss), Differences Between Second Quarter (Interim) Earnings Forecasts (Consolidated/Non-consolidated) and Actual Results, and Revision of Full-year Earnings Forecasts (Consolidated/Non-consolidated)

Overview of Performance

An extraordinary loss (impairment loss) was recorded in the second quarter of the fiscal year ending February 2027. Differences arose between the consolidated and non-consolidated second quarter (interim) forecasts and actual results. Revenue amounted to 40,511 million yen, operating income to 557 million yen, ordinary income to 851 million yen, and interim net income attributable to owners of parent to 130 million yen, significantly below the previous forecasts. The full-year forecasts have been revised to revenue of 80,200 million yen, operating income of 460 million yen, ordinary income of 860 million yen, net income attributable to owners of parent of 10 million yen, and EPS of 0.29 yen. In the first half, measures were implemented to recover customer numbers and raise average spending, but results fell short of plan, with inventory increases and suppressed promotional spending among the contributing factors.

Outlook and Response

For the second half, the company will review promotional measures and continue initiatives to encourage store visits, strengthen product mix, and reduce inventory. Measures to promote store visits such as introducing d-point will continue, alongside strengthened store support and ongoing expense control. The full-year forecast has been revised again based on first-half results. Going forward, the company will continue measures to expand the customer base and improve average spending, optimize inventory levels, and verify the effectiveness of promotional activities.